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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Irish Continental Group Plc | LSE:ICGC | London | Ordinary Share | IE00BLP58571 | UTS (COMP 1 ORD EUR0.065 & 10 RED) (CDI) |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 443.00 | 422.00 | 456.00 | 460 | 08:00:29 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Transportation Services, Nec | 572M | 61.6M | 0.3605 | 15.53 | 956.83M |
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TIDMICGC
6 March 2017
Preliminary Statement of Results for the year ended 31 December 2016
Irish Continental Group (ICG) the leading Irish-based maritime transport
group, reports a solid financial performance for the year ended 31
December 2016.
Highlights
-- Revenue up 1.5% to EUR325.4 million (2015: EUR320.6
million)
-- EBITDA up 10.6% to EUR83.5 million (2015: EUR75.5
million)
-- Basic EPS up 8.7% to 31.4c (2015: 28.9c)
-- RoRo freight volumes up 5.0% to 286,100 units (2015:
272,500 units)
-- Cars carried up 3.3% in the year to 414,100 units
(2015: 400,900 units)
-- Container volumes shipped in the year up 6.0% to
303,600 teu* (2015: 286,500 teu)
-- Port lifts handled in the year up 15.9% to 288,100
lifts (2015: 248,500 lifts)
-- MV Kaitaki to remain on charter to June 2020
-- Net Debt down 14.4% to EUR37.9 million from EUR44.3
million at 31 December 2015
-- IAS 19 accounting deficit on retirement benefit
schemes has increased from EUR5.1 million at 31
December 2015 to EUR13.5 million at 31 December 2016
-- Final dividend 7.760 cent, up 5.0% (2015: 7.387 cent)
*teu = twenty foot equivalent units
Commenting on the results Chairman John B McGuckian said,
"2016 was another successful year for the group with growth in revenue
of 1.5% to EUR325.4 million and earnings before interest, tax,
depreciation and amortisation (EBITDA) of EUR83.5 million, up 10.6%. The
strong performance for the financial year is underpinned by increased
car and freight volumes and increased charter revenues".
3 March 2017
For further information please contact:
Eamonn Rothwell, Chief Executive Officer Tel: +353 1 607 5628
David Ledwidge, Chief Financial Officer Tel: +353 1 607 5628
Email: info@icg.ie
Website: www.icg.ie
RESULTS
Financial Highlights 2016 2015 Change %
Revenue EUR325.4m EUR320.6m +1.5%
EBITDA EUR83.5m EUR75.5m +10.6%
EBIT EUR62.6m EUR57.2m +9.4%
2016 has been a successful year for the Group, with a positive
operational and financial performance in both divisions building upon
the continued Irish economic recovery.
The Group has again strengthened its strategic position as the leading
maritime transport provider in the Republic of Ireland. Revenue for the
year grew 1.5% to EUR325.4 million (2015: EUR320.6 million). EBITDA for
the year increased by 10.6% to a record high of EUR83.5 million (2015:
EUR75.5 million). Basic EPS, which excludes the net interest cost on
defined benefit obligations, was 8.7% higher at 31.4 cent.
The Group has benefited from the continuing improvement in 2016 of the
economies in our sphere of operations. The Irish economy has continued
to grow and this has been positive for the Group with increased
carryings across all business areas. We have also benefited from lower
fuel prices year on year. These positive benefits have been partially
offset through reduced fuel surcharges to customers and increased
exchange rate volatility. The Group is a net receiver of Sterling which
means a weaker Sterling exchange rate has had a negative effect on year
on year comparisons. This has been a significant headwind for the group
in 2016, as Sterling weakened materially during our peak summer season.
The weakening of Sterling reduced our average tourism yields, however
this was partially offset by the reduction in Sterling denominated
costs.
OPERATIONAL REVIEW
Irish Continental Group operates through two divisions; the Ferries
Division operating under the Irish Ferries brand offering passenger and
RoRo freight services. The division is also engaged in ship chartering
activities with vessels chartered within the Group and to third parties.
The Container and Terminal Division includes the intermodal shipping
line Eucon as well as the division's strategically located container
terminals in Dublin and in Belfast.
FERRIES DIVISION
Financial Highlights 2016 2015 Change %
Revenue* EUR209.8m EUR203.9m +2.9%
EBITDA EUR70.7m EUR63.7m +11.0%
EBIT EUR52.3m EUR48.1m +8.7%
*Includes intersegment revenue of EUR7.1 million (2015: EUR0.3 million)
Operational Highlights 2016 2015 Change %
Volumes '000 '000
Cars 414.1 400.9 +3.3%
Passengers 1,622.9 1,675.8 -3.2%
RoRo freight 286.1 272.5 +5.0%
The Ferries Division had a strong year due to increased volumes, reduced
fuel costs and increased chartering activity. Revenue was 2.9% higher at
EUR209.8 million (2015: EUR203.9 million). EBITDA in the division
increased by 11.0% to EUR70.7 million (2015: EUR63.7 million) while EBIT
rose by 8.7% at EUR52.3 million (2015: EUR48.1 million) principally due
to higher freight and car volumes, lower fuel costs and increased
chartering activity.
Car and Passenger markets
It is estimated that the overall car market, to and from the Republic of
Ireland, grew by approximately 0.6% in 2016 to 794,100 cars, while the
all-island market, i.e. including routes into Northern Ireland, is
estimated to have grown by 2.0%. Irish Ferries' car carryings performed
strongly during the year, at 414,100 cars, (2015: 400,900 cars), up 3.3%
on the previous year. In the first half of the year Irish Ferries grew
its car volumes by 5.5% while in the second half of the year, which
includes the busy summer holiday season, volumes grew by 1.8%.
The total sea passenger market (i.e. comprising car, coach and foot
passengers) to and from the Republic of Ireland declined by 3.1% in
2016, to a total of 3.1 million passengers, while the all-island market
decreased by 1.2%. Irish Ferries' passenger numbers carried were down
3.2% at 1.623 million (2015: 1.676 million). In the first half of the
year, Irish Ferries passenger volumes were down 1.9% and in the second
half of the year, which is seasonally more significant, the decrease in
passenger numbers was 4.1%.
RoRo Freight
The RoRo freight market between the Republic of Ireland, and the U.K.
and France, continued to grow in 2016 on the back of the Irish economic
recovery, with the total number of trucks and trailers up 7.0%, to
approximately 952,000 units. On an all-island basis, the market
increased by around 5.8% to approximately 1.75 million units.
Irish Ferries' carryings, at 286,100 freight units (2015: 272,500
freight units), were up 5.0% in the year with volumes up 5.6% in the
first half and 4.4% in the second half. The freight market enjoyed
strong growth in 2016 helped by favourable economic conditions in the
Republic of Ireland. The growth in the freight market reflects the
continued strong performance by the Irish Economy and our ongoing focus
on our customer needs.
Chartering
The MV Kaitaki remained on charter to KiwiRail during the period,
trading in New Zealand. KiwiRail, the charterer of the MV Kaitaki, has
exercised its option to extend the charter commencing on the expiry of
the current term for a further term of three years ending June 2020. The
container vessel MV Ranger remains on time charter to a third party and
is currently trading in North West Europe while the MV Elbtrader, MV
Elbcarrier and MV Elbfeeder remain on time charter to the Group's
container shipping subsidiary Eucon. The HSC Westpac Express which was
delivered to the Group on 1 June 2016 was immediately chartered to a
third party and is operating in Asia.
CONTAINER AND TERMINAL DIVISION
Financial Highlights 2016 2015 Change %
Revenue* EUR123.9m EUR118.2m +4.8%
EBITDA EUR12.8m EUR11.8m +8.5%
EBIT EUR10.3m EUR9.1m +13.2%
*Includes intersegment revenue of EUR1.2 million (2015: EUR1.2 million)
Operational Highlights 2016 2015 Change %
Volumes '000 '000
Container freight (teu*) 303.6 286.5 +6.0%
Port lifts 288.1 248.5 +15.9%
*teu: twenty foot equivalent units
Revenue in the division increased to EUR123.9 million (2015: EUR118.2
million). Revenue is derived from container handling and related
ancillary revenues at our terminals and in Eucon from a mix of domestic
door-to-door, quay-to-quay and feeder services with 70% (2015: 71%) of
shipping revenue generated from imports into Ireland. With a flexible
chartered fleet and slot charter arrangements Eucon was able to adjust
capacity and thereby continue to meet the requirements of customers in a
cost effective and efficient manner. EBITDA in the division increased to
EUR12.8 million (2015: EUR11.8 million) while EBIT rose 13.2% to EUR10.3
million (2015: EUR9.1 million) which included a full year contribution
from the consolidated container terminal in Belfast.
In Eucon overall container volumes shipped were up 6.0% compared with
the previous year at 303,600 teu (2015: 286,500 teu). The resulting
revenue increase was offset by a 34.0% increase in vessel charter costs
as the market for container vessels tightened.
Containers handled at the Group's terminals in Dublin Ferryport
Terminals (DFT) and Belfast Container Terminal (BCT) were up 15.9% at
288,100 lifts (2015: 248,500 lifts). DFT's volumes were up 1.9%, while
BCT's lifts were up 42.3%. The increase in Belfast arises from the full
year operation of the consolidated container terminal at Victoria
Terminal 3 (VT3). The process of combining the two existing container
terminals in Belfast was completed in September 2015.
GROUP FINANCE REVIEW
A summary cash flow is presented below:
Cash Flow 2016 2015
EURm EURm
Operating profit (EBIT*) 62.6 57.2
Depreciation 20.9 18.3
EBITDA* 83.5 75.5
Working capital movements 4.7 (1.6)
Pension payments in excess of service costs (1.8) (2.7)
Other 0.1 0.6
Cash generated from operations 86.5 71.8
Interest paid (2.3) (2.8)
Tax paid (2.1) (0.8)
Capex (57.0) (35.0)
Free cash flow* 25.1 33.2
Proceeds from asset sales 1.3 0.1
Dividends (21.0) (19.9)
Share issue 2.7 3.5
Interest received 0.1 0.1
Net flows 8.2 17.0
Opening net debt (44.3) (61.3)
Translation/other (1.8) -
Closing net debt* (37.9) (44.3)
*Additional information in relation to these Alternative Performance
Measures ("APMs") is disclosed on page 20.
EBITDA for the year was EUR83.5 million (2015: EUR75.5 million). There
was a net inflow of working capital of EUR4.7 million, due to a decrease
in receivables of EUR1.4 million partially offset by an increase in
inventories of EUR0.4 million and an increase in payables of EUR3.7
million. The Group made payments, in excess of service costs to the
Group's pension funds of EUR1.8 million. Cash generated from operations
amounted to EUR86.5 million (2015: EUR71.8 million).
Interest paid was EUR2.3 million (2015: EUR2.8 million) while taxation
paid was EUR2.1 million (2015: EUR0.8 million). Interest received
amounted to EUR0.1 million (2015: EUR0.1 million).
Capital expenditure was EUR57.0 million (2015: EUR35.0 million) which
increased primarily due to the company entering into an agreement for
the construction of a new ferry and also includes the purchase of the
fastcraft "Westpac Express". On 31 May 2016, ICG announced that it had
entered into an agreement with the German company Flensburger
Schiffbau-Gesselschaft & Co.KG ("FSG") whereby FSG has agreed to build a
cruise ferry for ICG at a contract price of EUR144 million. This is
scheduled for delivery during 2018 and will be financed through a
combination of cash resources and loan facilities. This new vessel
investment will support the longer term objectives of our business. The
cruise ferry will be designed to best meet the seasonality of our
business. As per the agreement, ICG has paid 20% of the contract price
of the vessel to FSG during 2016. The remaining 80% is payable upon
delivery of the vessel. The purchase of the Westpac Express was agreed
in April 2016 for $13.25 million. The vessel was delivered to the
company in June 2016 and immediately chartered out to a third party. It
has remained on charter since delivery.
The charter-in of the MV Epsilon has been extended for a further period
of two years. The charter will now expire in November 2018.
Also included in capital expenditure is the annual refits of the vessels
and new containers to enhance the Eucon fleet of equipment.
Net debt at year end was EUR37.9 million (2015: EUR44.3 million) which
represents 0.5 times EBITDA (2015: 0.6 times EBITDA).
A summary balance sheet is presented below:
Balance Sheet 2016 2015
EURm EURm
Property, plant & equipment and intangible assets 205.1 170.9
Retirement benefit surplus 2.4 5.6
Other current assets 41.9 42.9
Cash and bank balances 42.2 25.0
Total assets 291.6 244.4
Non-current borrowings 1.7 55.3
Retirement benefit obligation 15.9 10.7
Other non-current liabilities 3.6 4.7
Current borrowings 78.4 14.0
Other current liabilities 47.6 44.2
Total liabilities 147.2 128.9
Total equity 144.4 115.5
Total equity and liabilities 291.6 244.4
The total net deficit of all defined benefit pension schemes at 31
December 2016 was EUR13.5 million in comparison to EUR5.1 million at 31
December 2015. The deficit increase reflects an actuarial loss of EUR9.6
million primarily related to a decrease in high quality corporate bond
yields, which drives the discount rate used to value scheme liabilities.
Shareholders' equity increased to EUR144.4 million from EUR115.5 million
at 31 December 2015. The main reasons for the movement were due to a
profit for the financial period of EUR58.8 million offset by dividends
paid of EUR21.0 million and an actuarial loss arising on retirement
benefit schemes of EUR9.6 million.
FUEL
2016 2015 Change %
Fuel costs EUR32.2m EUR39.0m -17.4%
Group fuel costs in 2016 amounted to EUR32.2 million (2015: EUR39.0
million). The reduction in fuel cost was due to the fall in global US
Dollar oil prices, offset by a stronger US Dollar versus Euro.
In the reporting period the Group had not engaged in financial
derivative trading to hedge its fuel costs. The Group has in place a
transparent fuel surcharge mechanism linked to the spot market for fuel
oils. In line with the reduced cost of fuel, surcharge revenues were
lower.
DIVID
During the year the Group paid the final dividend for 2015 of 7.387 cent
per ICG Unit. The Group also paid an interim dividend for 2016 of 3.820
cent per ICG Unit, and the Board is proposing a final dividend of 7.760
cent per ICG Unit, payable in June 2017, making a total dividend for
2016 of 11.580 cent per ICG Unit, an increase of 5.0% on the prior year.
Subject to shareholder approval at the Annual General Meeting, the final
dividend will be paid on 9 June 2017 to shareholders on the register at
close of business on 26 May 2017. Irish dividend withholding tax will be
deducted where appropriate.
THE BOARD
On 3 March 2016, the Group appointed David Ledwidge as a Director of the
Company. He has been with ICG for over 9 years and has played a very
significant part in the development of the Group which now looks forward
to his contribution at Board level. He has been Chief Financial Officer
of the Group since May 2015.
CURRENT TRADING & OUTLOOK
Since our last update to the market, in the Interim Management Statement
of November 2016, trading conditions have remained favourable. Despite
the current uncertainty surrounding the impact of the UK decision to
leave the EU and the weakness of Sterling, the Irish Sea markets
continue to perform well. For the full year 2016 the Ferries Division
recorded strong volume growth of 3.3% for cars and 5.0% for RoRo
freight. In the Container and Terminal Division overall container
volumes shipped were up 6.0%, while port lifts were up 15.9%.
Volumes for the year to date up to 22 February are soft reflecting the
reversal of a number of one off benefits in the same period in early
2016 and are not significant given the relatively low volumes at this
time of the season.
RoRo volumes are up 1.9% (2016: up 8.5%) and car volumes are down 1.8%
(after a 70.0% drop in the number of fast craft sailings due to an
extended dry dock). Container volumes are down 0.7% (2016: up 13.1%).
Terminal lifts are down 3.5% (2016: up 56.6%).
World fuel prices have increased over the last number of months, but
they remain at manageable levels and our fuel surcharge mechanisms
remain in place. The weakening of Sterling versus the Euro since June
2016 will continue to affect the Euro value of UK originating revenues.
Due to the ongoing improvement in the economic outlook in our sphere of
operations, we look forward, to another year of volume growth in our
markets, but with higher fuel prices and weaker Sterling. Nonetheless,
we expect 2017 to be a year of strong cash generation and to see the
continued strengthening of our balance sheet. We look forward to the
arrival in 2018 of our new ship which will bring cost savings and
significant additional earnings potential to the Group.
John B. McGuckian
Chairman
Consolidated Income Statement for the year ended 31 December 2016
Notes 2016 2015
EURm EURm
Revenue 325.4 320.6
Depreciation and amortisation (20.9) (18.3)
Employee benefits expense (22.0) (21.4)
Other operating expenses (219.9) (223.7)
Operating profit 62.6 57.2
Finance income 0.1 0.1
Finance costs (2.3) (3.2)
Profit before tax 60.4 54.1
Income tax expense 3 (1.6) (0.4)
Profit for the year: all attributable
to equity holders of the parent 58.8 53.7
Earnings per share - expressed in EUR cent per share
Basic 4 31.4c 28.9c
Diluted 4 31.1c 28.5c
Consolidated Statement of Comprehensive Income for the year ended 31
December 2016
2016 2015
EURm EURm
Profit for the year 58.8 53.7
Items that may be reclassified subsequently to profit
or loss:
Cash flow hedges:
- Fair value movements arising during the year (0.1) (0.2)
-Transfer to Consolidated Income Statement - net settlement
of cash flow hedge 0.4 0.4
Exchange differences on translation of foreign operations (2.8) 0.5
Items that will not be reclassified subsequently to
profit or loss:
Actuarial (loss) / gain on defined benefit obligations (9.6) 16.5
Deferred tax on defined benefit obligations 0.7 (0.3)
Other comprehensive (expense) / income for the year (11.4) 16.9
Total comprehensive income for the year:
all attributable to equity holders of the parent 47.4 70.6
Consolidated Statement of Financial Position as at 31 December 2016
Notes 2016 2015
EURm EURm
Assets
Non-current assets
Property, plant and equipment 204.3 170.0
Intangible assets 0.8 0.9
Retirement benefit surplus 7 2.4 5.6
207.5 176.5
Current assets
Inventories 2.3 1.9
Trade and other receivables 39.6 41.0
Cash and cash equivalents 5 42.2 25.0
84.1 67.9
Total assets 291.6 244.4
Equity and liabilities
Equity
Share capital 12.2 12.1
Share premium 15.7 13.1
Other reserves (11.8) (9.0)
Retained earnings 128.3 99.3
Equity attributable to equity
holders of the parent 144.4 115.5
Non-current liabilities
Borrowings 5 1.7 55.3
Deferred tax liabilities 2.7 3.8
Provisions 0.6 0.5
Deferred grant 0.3 0.4
Retirement benefit obligation 7 15.9 10.7
21.2 70.7
Current liabilities
Borrowings 5 78.4 14.0
Trade and other payables 46.7 43.0
Derivative financial instruments 0.2 0.5
Current income tax liabilities - 0.1
Provisions 0.6 0.5
Deferred grant 0.1 0.1
126.0 58.2
Total liabilities 147.2 128.9
Total equity and liabilities 291.6 244.4
Consolidated Statement of Changes in Equity for the year ended 31
December 2016
Share Share Other Retained
Capital Premium Reserves Earnings Total
EURm EURm EURm EURm EURm
Balance at 1 January 2016 12.1 13.1 (9.0) 99.3 115.5
Profit for the year - - - 58.8 58.8
Other comprehensive income / (expense) - - (1.9) (9.5) (11.4)
Total comprehensive (expense) / income for the year - - (1.9) 49.3 47.4
Employee share-based payment expense - - 0.2 - 0.2
Share issue 0.1 2.6 - - 2.7
Dividends - - - (21.0) (21.0)
Settlement of equity plans through market purchase
of shares (0.4) (0.4)
Transferred to retained earnings on exercise of share
options - - (1.1) 1.1 -
0.1 2.6 (2.8) 29.0 28.9
Balance at 31 December 2016 12.2 15.7 (11.8) 128.3 144.4
Analysed as follows:
Share capital 12.2
Share premium 15.7
Other reserves (11.8)
Retained earnings 128.3
144.4
Other Reserves comprise the following:
Share
Capital Options Hedging Translation
Reserve Reserve Reserve Reserve Total
EURm EURm EURm EURm EURm
Balance at 1 January 2016 7.3 3.3 (0.5) (19.1) (9.0)
Total comprehensive income / (expense) - - 0.3 (2.2) (1.9)
Employee share-based payment expense - 0.2 - - 0.2
Transferred to retained earnings on exercise of share
options - (1.1) - - (1.1)
- (0.9) 0.3 (2.2) (2.8)
Balance at 31 December 2016 7.3 2.4 (0.2) (21.3) (11.8)
Consolidated Statement of Changes in Equity for the year ended 31
December 2015
Share Share Other Retained
Capital Premium Reserves Earnings Total
EURm EURm EURm EURm EURm
Balance at 1 January 2015 12.0 9.7 (8.0) 47.6 61.3
Profit for the year - - - 53.7 53.7
Other comprehensive income - - 0.5 16.4 16.9
Total comprehensive income for the year - - 0.5 70.1 70.6
Employee share-based payment expense - - 0.1 - 0.1
Share issue 0.1 3.4 - - 3.5
Dividends - - - (19.9) (19.9)
Settlement of equity plans through market purchase
of shares (0.1) (0.1)
Transferred to retained earnings on exercise of share
options - - (1.6) 1.6 -
0.1 3.4 (1.0) 51.7 54.2
Balance at 31 December 2015 12.1 13.1 (9.0) 99.3 115.5
Analysed as follows:
Share capital 12.1
Share premium 13.1
Other reserves (9.0)
Retained earnings 99.3
115.5
Other Reserves comprise the following:
Share
Capital Options Hedging Translation
Reserve Reserve Reserve Reserve Total
EURm EURm EURm EURm EURm
Balance at 1 January 2015 7.3 4.8 (0.7) (19.4) (8.0)
Total comprehensive income - - 0.2 0.3 0.5
Employee share-based payment expense - 0.1 - - 0.1
Transferred to retained earnings on exercise of share
options - (1.6) - - (1.6)
- (1.5) 0.2 0.3 (1.0)
Balance at 31 December 2015 7.3 3.3 (0.5) (19.1) (9.0)
Consolidated Statement of Cash Flows for the year ended 31 December 2016
2016 2015
Notes EURm EURm
Net cash inflow from operating activities 6 82.1 68.2
Cash flow from investing activities
Interest received 0.1 0.1
Proceeds on disposal of property, plant and equipment 1.3 0.1
Purchases of property, plant and equipment (56.7) (34.4)
Purchases of intangible assets (0.3) (0.6)
Net cash outflow from investing activities (55.6) (34.8)
Cash flow from financing activities
Dividends paid to equity holders of the Company (21.0) (19.9)
Repayments of borrowings (13.0) (28.0)
Repayments of obligations under finance leases (1.1) (1.0)
Proceeds on issue of ordinary share capital 2.7 3.5
New bank loans raised 25.0 17.5
Settlement of equity plans through market purchase
of shares (0.4) (0.1)
Net cash outflow from financing activities (7.8) (28.0)
Net increase in cash and cash equivalents 18.7 5.4
Cash and cash equivalents at the beginning of year 25.0 19.4
Effect of foreign exchange rate changes (1.5) 0.2
Cash and cash equivalents at the end of year 5 42.2 25.0
Notes to the Preliminary Statement for the year ended 31 December 2016
1. Accounting policies
The Group did not adopt any new International Financial Reporting
Standards (IFRS) or Interpretations in the year that had a material
impact on the Group's Financial Statements.
2. Segmental information
The Board is deemed the chief operating decision maker within the Group.
For management purposes, the Group is currently organised into two
operating segments: Ferries and Container & Terminal.
Net Assets (equity
Revenue Profit Before Tax attributable to equity holders)
Analysis of
results 2016 2015 2016 2015 2016 2015
EURm EURm EURm EURm EURm EURm
Ferries 209.8 203.9 52.3 48.1 158.0 134.2
Container and
Terminal 123.9 118.2 10.3 9.1 24.3 25.6
Intersegment
Revenue (8.3) (1.5) - - - -
325.4 320.6 62.6 57.2 182.3 159.8
Net interest
/ debt - - (2.2) (3.1) (37.9) (44.3)
Total 325.4 320.6 60.4 54.1 144.4 115.5
Analysis by
origin of
booking 2016 2015
EURm EURm
Ireland 163.2 153.6
United
Kingdom 66.7 69.5
Netherlands 53.4 52.0
Belgium 26.5 26.9
France 7.6 7.1
Other 8.0 11.5
Total 325.4 320.6
3. Income tax expense
2016 2015
EURm EURm
Current tax 2.0 0.7
Deferred tax (0.4) (0.3)
Income tax expense for the year 1.6 0.4
The Company and its Irish tax resident subsidiaries have elected to be
taxed under the Irish tonnage tax method. Under the tonnage tax method,
taxable profit on eligible activities is calculated on a specified
notional profit per day related to the tonnage of the ships utilised.
In accordance with the IFRIC guidance on IAS 12 Income Taxes, the
tonnage tax charge is not considered an income tax expense and has been
included in other operating expenses in the Consolidated Income
Statement.
Domestic income tax is calculated at 12.5% of the estimated assessable
profit for the year for all activities which do not fall to be taxed
under the tonnage tax system. Taxation for other jurisdictions is
calculated at the rates prevailing in the relevant jurisdictions.
The total expense for the year is reconciled to the accounting profit as
follows:
2016 2015
EURm EURm
Profit before tax 60.4 54.1
Tax at the domestic income tax rate of 12.5% (2015:
12.5%) 7.6 6.8
Effect of tonnage relief (5.8) (5.5)
Net utilisation of tax losses (0.1) (0.3)
Difference in effective tax rates 0.2 -
Other items (0.3) (0.6)
Income tax expense recognised in the
Consolidated Income Statement 1.6 0.4
4. Earnings per share
2016 2015
Number of shares '000 '000
Weighted average number of ordinary shares for the
purposes of
basic earnings per share 187,536 185,776
Effect of dilutive potential ordinary shares: Share
options 1,692 2,806
Weighted average number of ordinary shares for the
purposes of
diluted earnings per share 189,228 188,582
The denominator for the purposes of calculating both basic and diluted
earnings per share has been adjusted to reflect shares issued during the
year and excludes treasury shares.
The earnings used in both the adjusted basic and adjusted diluted
earnings per share have been adjusted to take into account the net
interest on defined benefit pension obligations.
The calculation of the basic and diluted earnings per share attributable
to the ordinary equity holders of the parent is based on the following
data:
2016 2015
Earnings EURm EURm
Earnings for the purposes of basic and diluted earnings
per share -
Profit for the year attributable to equity holders
of the parent 58.8 53.7
Net interest cost on defined benefit obligations - 0.4
Earnings for the purposes of adjusted basic and diluted
earnings per share 58.8 54.1
2016 2015
Cent Cent
Basic earnings per share 31.4 28.9
Diluted earnings per share 31.1 28.5
Adjusted basic earnings per share 31.4 29.1
Adjusted diluted earnings per share 31.1 28.7
Diluted earnings per ordinary share
Diluted earnings per Ordinary Share is calculated by adjusting the
weighted average number of Ordinary Shares outstanding to assume the
exercise of all vested share option awards at 31 December. Share option
awards which have not yet satisfied the required performance conditions
for vesting are excluded from the calculation. The dilutive effect of
vested share options is calculated as the difference in the average
market value during the period and the option price expressed as a
percentage of the average market value. Of the 2,866,500 (2015:
4,815,000) vested options at 31 December 2016, the dilutive effect is
1,692,000 ordinary shares (2015: 2,806,000 ordinary shares).
5. Net debt
Cash Loans Leases Total
EURm EURm EURm EURm
At 1 January 2016
Current assets 25.0 - - 25.0
Creditors due within one year - (13.0) (1.0) (14.0)
Creditors due after one year - (52.7) (2.6) (55.3)
25.0 (65.7) (3.6) (44.3)
Cash flow 17.2 - - 17.2
Drawdown - (25.0) - (25.0)
Repayment - 13.0 1.1 14.1
Foreign exchange rate changes - - 0.1 0.1
17.2 (12.0) 1.2 6.4
At 31 December 2016
Current assets 42.2 - - 42.2
Creditors due within one year - (77.7) (0.7) (78.4)
Creditors due after one year - - (1.7) (1.7)
42.2 (77.7) (2.4) (37.9)
The loan drawdown and repayments have been made under the Group's loan
facilities.
6. Net cash from operating activities
2016 2015
EURm EURm
Operating activities
Profit for the year 58.8 53.7
Adjustments for:
Finance costs (net) 2.2 3.1
Income tax expense 1.6 0.4
Retirement benefit obligations - current service cost 1.9 1.9
Retirement benefit obligations - payments (3.7) (4.3)
Retirement benefit obligations - past service credit - (0.3)
Depreciation of property, plant and equipment 20.6 18.0
Amortisation of intangible assets 0.4 0.4
Amortisation of deferred income (0.1) (0.1)
Share-based payment expense 0.2 0.1
Gain on disposal of property, plant and equipment (0.3) (0.1)
Impairment - 0.6
Increase in provisions 0.2 -
Operating cash flows before movements in working capital 81.8 73.4
(Increase) / decrease in inventories (0.4) 0.1
Decrease / (increase) in receivables 1.4 (6.3)
Increase in payables 3.7 4.6
Cash generated from operations 86.5 71.8
Income taxes paid (2.1) (0.8)
Interest paid (2.3) (2.8)
Net cash inflow from operating activities 82.1 68.2
7. Retirement benefit schemes
The principal assumptions used for the purpose of the actuarial
valuations were as follows:
STERLING EURO
LIABILITIES LIABILITIES
2016 2015 2016 2015
Discount rate 2.50% 3.75% 1.70% 2.20%
Inflation rate 3.45% 3.10% 1.60% 1.50%
Rate of increase of
pensions in payment 3.15% 2.90% 0.70% - 0.80% 0.60% - 0.70%
Rate of general salary
increases 1.00% 1.44% 0.00% - 1.00% 0.00% - 1.00%
The average life expectancy used in all schemes at age 60 is as follows:
2016 2015
Male Female Male Female
Current retirees 26.1 years 28.9 years 26.0 years 28.9 years
Future retirees 28.5 years 30.8 years 27.6 years 30.2 years
The amount recognised in the balance sheet in respect of the Group's
defined benefit obligations,
is as follows:
SCHEMES WITH SCHEMES WITH
LIABILITIES IN LIABILITIES IN
STERLING EURO
2016 2015 2016 2015
EURm EURm EURm EURm
Equities 9.4 9.9 124.7 119.4
Bonds 14.9 16.2 93.7 88.4
Property 0.3 0.4 18.0 16.5
Other 1.0 0.6 12.8 12.3
Market value of scheme assets 25.6 27.1 249.2 236.6
Present value of scheme liabilities (23.9) (22.8) (264.4) (246.0)
Surplus / (deficit) in schemes 1.7 4.3 (15.2) (9.4)
The movement during the year is reconciled as follows:
2016 2015
EURm EURm
Opening net deficit (5.1) (24.1)
Current service cost (1.9) (1.9)
Employer contributions paid 3.7 4.3
Past service credit - 0.3
Net interest cost - (0.4)
Actuarial (loss) / gain (9.6) 16.5
Other (0.6) 0.2
Closing net deficit (13.5) (5.1)
Schemes in surplus 2.4 5.6
Schemes in deficit (15.9) (10.7)
Net deficit (13.5) (5.1)
8. Related party transactions
Transactions between the company and its subsidiaries, which are related
parties, have been eliminated on consolidation.
During the year ended 31 December 2016 the material transactions between
Irish Continental Group plc and its key management personnel were the
remuneration of employees and Directors, the participation in Group
dividends on the same terms available to shareholders generally, and the
provision of professional services at arm's length basis.
9. General information
The financial information in this preliminary announcement does not
constitute full statutory financial statements, a copy of which is
required to be annexed to the annual return to the Companies
Registration Office. A copy of the financial statements in respect of
the financial year ended 31 December 2016 will be annexed to the annual
return for 2017. The auditors have made a report, without any
qualification on their audit, of the consolidated financial statements
in respect of the financial year ended 31 December 2016 and the
Directors approved the consolidated financial statements in respect of
the financial year ended 31 December 2016 on 3 March 2017. A copy of the
consolidated financial statements in respect of the year ended 31
December 2015 has been annexed to the annual return for 2016 filed at
the Companies Registration Office.
The consolidated financial statements have been prepared in accordance
with IFRS as adopted by the European Union and therefore the Group's
financial statements comply with Article 4 of the IAS Regulations. The
consolidated financial statements have also been prepared in accordance
with the Companies Acts 2014, and the Listing Rules of the Irish Stock
Exchange and the UK Listing Authority.
The consolidated financial statements have been prepared on the
historical cost basis except for the revaluation of certain financial
instruments.
Certain financial measures set out in our Preliminary Statement of
Results for the year ended 31 December 2016 are not defined under
International Financial Reporting Standards (IFRS). Presentation of
these Alternative Performance Measures ("APMs") provides useful
supplementary information which, when viewed in conjunction with the
Company's IFRS financial information, allows for a more meaningful
understanding of the underlying financial and operating performance of
the Group. These non-IFRS measures should not be considered as an
alternative to financial measures as defined under IFRS. Descriptions of
the APMs included in this report are disclosed below.
APM Description Benefit of APM
EBITDA EBITDA represents earnings before interest, tax, depreciation Eliminates the effects of financing and accounting
and amortisation. decisions to allow assessment of the profitability
and performance of the Group.
EBIT EBIT represents earnings before interest and tax. Measures the Group's earnings from ongoing
operations.
Free Free cash flow comprises operating cash flow less Assesses the availability to the Group of funds for
cash capital expenditure. reinvestment or for return to shareholders.
flow
Net Net debt comprises total borrowings less cash and Measures the Group's ability to repay its debts if
debt cash equivalents. they were to fall due immediately.
10. Subsequent events
The Board is proposing a final dividend of 7.760 cent per ICG unit in
respect of the results for the year ended 31 December 2016.
There have been no other significant events, outside the ordinary course
of business, affecting the Group since 31 December 2016.
11. Board Approval
This preliminary announcement was approved by the Board of Directors of
Irish Continental Group plc. on 3 March 2017.
12. Annual Report and Annual General Meeting
The Group's Annual Report and notice of Annual General Meeting, which
will be held on Wednesday 17 May 2017, will be notified to shareholders
in April 2017.
This announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the information
contained therein.
Source: Irish Continental Group plc via Globenewswire
http://www.icg.ie/
(END) Dow Jones Newswires
March 06, 2017 02:00 ET (07:00 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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